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Coty sees revenue growth in Q3, partners with Avon

BY Antoinette Alexander

NEW YORK — Coty announced on Wednesday that its third-quarter net revenues returned to growth, with increases in fragrances and skin and body care during the quarter.

The beauty company also announced on Wednesday a partnership with Avon, by which select Coty fragrances will be marketed and sold through Avon Brazil’s network of 1.5 million independent sales representatives.

For the quarter ended March 31, net revenues totaled about $1 billion, up 2% on a like-for-like basis and 1% on a reported basis compared with the prior-year period.

In fragrance, revenues grew 6%, supported by growth in 4-out-of-5 Coty’s fragrance power brands — Calvin Klein, Davidoff, Marc Jacobs and Playboy.

Skin and body care revenues increased 8%, as philosophy continued its growth momentum, Adidas benefited from its traction in the emerging markets, and Lancaster saw strong growth particularly in the sun category.

Color cosmetics declined 6%, reflecting continued pressure on the nail category in the United States, partially offset by strong Rimmel performance.

Net income decreased to a net income loss of $253 million from net income of $20.4 million in the prior-year period. Coty stated that the decrease primarily reflected lower operating income as a result of the asset impairment, partially offset by lower interest expense and the income tax benefit during the quarter.

"Coty returned to revenues growth in the third quarter. The majority of our power brands showed positive development thanks to a competitive innovation program and growth in the emerging markets accelerated to 15%. Both prove our strategic focus on these brands and geographies is starting to bear fruit. While market conditions remain challenging in some product segments in parts of the world, we are sticking to our current strategy and targeting for continued growth for the remainder of the calendar year while working to significantly improve the cost profile of the business,” said Michele Scannavini, CEO of Coty. 

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Stater Bros. sales up 0.2% for Q2

BY Ryan Chavis

SAN BERNARDINO, Calif. — Stater Bros. chairman, president and CEO Jack Brown on Tuesday announced second-quarter results for fiscal 2014.

Consolidated sales in the 13 weeks ended March 30 totaled $963.8 million, up $1.9 million (or 0.2%) from the previous year. Sales for the 26 weeks ended March 30, 2014 were $1.95 billion, representing a $17.2 million (or 0.9 %) increase from the same period in the prior year.

Sales in the prior year period were affected by the Easter holiday that fell in second quarter 2013 and third quarter 2014 fiscal year, the company said. Gross profit margins were 27.64% of sales compared to 26.90% of sales for the same period in the prior fiscal year.

"We are pleased with our sales growth in the second quarter of fiscal 2014 given the extremely competitive environment in Southern California," Brown said. "We continue to be the No. 1 full-service supermarket chain in Southern California according to a March 2014 national consumer survey.

On May 12, the company refinanced and signed a new credit agreement, which replaced the company’s old revolving line of credit, term loan and senior unsecured notes.

"The restructuring of our debt and the related reduction in our interest cost will allow us to continue to invest in our ‘Valued Customers’ and continue to allow us to not fully pass on the costs of inflation which has allowed us to keep our prices low," Brown added.

 

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Julep Beauty unveils first fully customizable beauty subscription box

BY Antoinette Alexander

SEATTLE — Start-up beauty brand Julep Beauty has launched this month its first fully customizable monthly beauty box subscription, enabling beauty mavens to choose from among two million possible combinations of full-size beauty products and limited-batch nail polishes.

In the past, "subscription" has meant "set it and forget it" — sign up, give up your credit card and then each month receive a selection of products chosen per the brand's schedule. Julep is looking to change that paradigm by asking customers to actively engage in their subscription each month, choosing exactly which products they'd like to receive. Subscribers will be able to choose from new products or Julep bestsellers, discovering the latest in skin care, color cosmetics and nail colors.

"We want women to engage with us each month," said Jane Park, CEO and founder of Julep. "With this new service, we're bringing the beauty counter experience to our community of Maven subscribers; letting them actively engage in product selection so they receive exactly the combination of monthly products that works for them."

During a window of five days every month, Maven subscribers are invited to view the newest products, discuss on Julep's active social communities online, and then make their own personalized selection of products for inclusion in their boxes. This engagement subscription model lets shoppers come together at "a moment in time" to share their opinions and feedback.

"We're only able to do this because we're a full-stack beauty company," Park said. "Since we own the entire customer experience from product development through to fulfillment, we can let customers choose from more 300 new products we launch every year, including the best of what we've launched to date."

Taking a social approach to product development, Julep launches more than 300 Julep branded, toxin-free nail, color cosmetics and skin care products each year, and is positioned as the only beauty brand that creates new products based on crowd sourced customer feedback gathered via social channels, such as forums, Facebook, Twitter, Instagram and Pinterest. Founded in 2007, Julep has raised $56 million from leading venture capital firms.

 

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